Valued at a market cap of $32.6 billion, Iron Mountain Incorporated (IRM) is a global leader in information management and storage solutions. Headquartered in Boston, Massachusetts, the company provides a broad range of services, including records and document management, data center and cloud services, secure shredding, and digital transformation solutions. With a history dating back to 1951, Iron Mountain serves more than 225,000 customers across industries such as healthcare, government, legal, and finance. The company is ready to unveil its Q4 earnings on Thursday, Feb. 13, before the market opens.
Ahead of the event, analysts expect IRM to report adjusted funds from operations of $1.11 per share, up 113.5% from $0.52 in the year-ago quarter. The company has consistently beaten Wall Street's earnings estimates in the last four quarters. Its adjusted FFO of $1.13 per share for the last quarter outpaced the consensus estimate by 10.8%.
For fiscal year 2024, analysts expect IRM to report an adjusted FFO of $4.18, up 128.4% from $1.83 in fiscal 2023.
Over the past year, IRM shares have soared 65.7%, substantially outperforming the broader S&P 500 Index's ($SPX) 25.3% gains and the Real Estate Select Sector SPDR Fund’s (XLRE) 8.9% returns during the same period.
Over the past year, Iron Mountain has far surpassed the broader market, fueled by surging demand for data storage solutions amidst economic volatility. The company's strategic ventures into data centers and asset lifecycle management (ALM) have been key drivers of its impressive growth trajectory. Further underscoring its dedication to shareholder value, Iron Mountain recently elevated its quarterly cash dividend by 10%, reaching $0.715 per share.
Despite delivering strong revenue growth, IRM shares dipped 9% following the release of its third-quarter earnings on Nov. 6. Total revenue climbed 12.2% year-over-year to $1.6 billion, driven by increases in storage rental and service revenues. However, the company reported a net loss of $33.6 million for the quarter, a sharp contrast to the $91 million net income recorded in the same period last year, disappointing the investors.
The consensus opinion on IRM stock is cautiously bullish, with an overall “Moderate Buy” rating. Of the eight analysts covering the stock, six advise a “Strong Buy” rating, one indicates a “Moderate Buy,” and one suggests a “Strong Sell.”
IRM's average analyst price target is $122.25, which implies a potential upswing of 10.1% from the prevailing price levels.
